New Banking Operation

BANCO COMERCIAL PORTUGUES S.A. 28 July 1999 BANCO COMERCIAL PORTUGUES (BCP) AND INTERAMERICAN ANNOUNCED THE LAUNCHING OF A NEW BANKING OPERATION IN GREECE. Banco Comercial Portuges, SA (BCP), Portugal's leading financial services Group, and INTERAMERICAN, Greece's leading insurance company, have agreed on the launching of a greenfield banking operation in the Greek Market. The new bank will cater for the retail banking market expecting to operate a network of over 120 branches in three years time. Total investment will reach 70 million EURO, approximately. The prospect of Greek integration in the EMU has created a favorable context for a fast developing financial service market, with solid growth prospects. The new banking operation is a complete service bank, able to satisfy the overall financial requirements of its customers. Convenience and a strong level service will be the driving forces of this new venture that will target all segments of the middle market of the individuals. Customer service is provided through a multi-channel platform consisting of a medium sized network of branches, an extensive multifunction ATM network, a full functionality telephone service and Internet based home banking accessibility. BCP is Portugal's leading publicly-owned financial services Group and has been expanding its international activities through alliances with strategic partners which share a management philosophy for the development of innovative solutions for financial services distribution. BCP reported on July 19, 1999 consolidated net income of 330 million EURO for the first half of 1999, reflecting a 227% increase for the same period of 1998. Earnings per share amounted to 1.65 Euros while ROE and ROA increased to 41.6% (1998:19.9%) and 2% (1998:0.7%), respectively. BCP is listed in Lisbon (BCPN.IN), London, New York and Frankfurt Stock Exchanges, with a market captilization of 5.1 billion EURO. BCP was incorporated in June 1985, following deregulation of the Portuguese banking industry. BCP has established a strong reputation in banking innovation, through its multi-channel and multi-brand approach to markets. Existing joint-ventures outside Portugal have strongly benefited both from BCP expertise and from the local partner's market knowledge. INTERAMERICAN is the largest private insurance Group in the Greek market, with a strong presence in life and health insurance and unit linked investments. It has also been successfully involved, through its subsidiaries, in the sector of non-life insurance, mutual fund management and credit cards services, the provision of medical services, technology, etc. Growth and momentum are key features for the INTERAMERICAN Group, as its annual growth rates demonstrates. More specifically, the consolidated turnover in 1999 is expected to reach approximately 340 million EURO, that is a 21% increase as against 1998, while the Group's consolidated profits before tax are estimated to exceed 70 million EURO, an increase of about 90% in relation to 1998. The INTERAMERICAN Group has recently been listed in the Athens Stock Exchange with a very successful entry performance. INTERAMERICAN's starting capitalization amounted to 590 million EURO, while in the second date of trading its market capitalization almost tripled (1.640 million EURO), a sure sign of a bright future in the Stock Exchange. INTERAMERICAN's progress and development so far in the financial and insurance services sector are marked by a management philosophy corresponding to that of BCP, for this reason, we are confident that the new banking operation the two Groups are jointly launching in Greece, will have all the conditions necessary for a dynamic and successful future.